In a recent article Small asset managers may be forced out of the market by MiFID II, according to think tanks New City Initiative (NCI) and Open Europe.
The NCI has said that EU regulations will introduce significant costs for UK asset managers and has called for the new rules to be reformed to preserve boutique firms.
Dominic Johnson, chairman of NCI, said: ‘The key trade-off for any business is that of costs versus income. The issues surrounding regulation are very similar – businesses need to operate in a regulated market, but the benefits of regulation need to outweigh the costs.
‘The investment management community and especially the ‘boutique’ community find that the regulatory burden imposed upon us by the EU is so expensive and onerous that in themselves these regulations are an issue in terms of our business sector prospering.’
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